Aeroflex Neu posts Q2 loss after Fibcorp disposal charge

Aeroflex Neu Limited reported a consolidated loss of Rs 3.92 crore for the quarter ended September 30, 2026, after booking a Rs 4.46 crore loss on the disposal of Fibcorp Polyweave Private Limited. Aeroflex Neu’s profit before exceptional items and tax rose to Rs 51.19 lakh, while engineering revenue doubled sequentially to Rs 1.60 crore.

Why did Aeroflex Neu report a consolidated Q2 loss?

Aeroflex Neu reported a consolidated loss because the September 2026 quarter included a Rs 4.46 crore exceptional loss on the sale of Fibcorp Polyweave Private Limited. Profit before exceptional items and tax was Rs 51.19 lakh, compared with Rs 18.17 lakh in the preceding June 2026 quarter. After the exceptional item, the company recorded a loss before tax of Rs 3.95 crore and a loss after tax of Rs 3.92 crore.

Aeroflex Neu sold its entire stake in Fibcorp for Rs 1.92 crore, and Fibcorp ceased to be a subsidiary from September 7, 2026. The company said this divestment means the current consolidated results are not strictly comparable with earlier periods. In the quarter ended September 30, 2025, Aeroflex Neu had reported consolidated profit after tax of Rs 1.07 crore, with no exceptional item.

Revenue from operations increased by Rs 7.51 crore from the June 2026 quarter and by Rs 1.23 crore from the September 2025 quarter. However, profit before exceptional items and tax remained below the Rs 1.07 crore reported a year earlier. The September 2026 exceptional charge was identified in the results as the loss on sale of the former subsidiary.

How did Aeroflex Neu’s operating segments perform in Q2?

Aeroflex Neu’s engineering activity generated revenue of Rs 1.60 crore in the quarter ended September 30, 2026, compared with Rs 80 lakh in the preceding quarter and Rs 1.20 crore in the year-earlier quarter. Engineering segment profit before interest and tax was Rs 1.51 crore, against Rs 75.91 lakh in June 2026 and Rs 1.14 crore in September 2025. Engineering segment assets stood at Rs 94.40 lakh at September 30, 2026.

Flexible packaging remained Aeroflex Neu’s largest reported operating segment, with quarterly revenue of Rs 33.80 crore, compared with Rs 27.08 crore in the June 2026 quarter and Rs 33.07 crore a year earlier. Its segment result was a loss of Rs 1.37 crore, widening from a Rs 92.16 lakh loss in the preceding quarter and a Rs 1.29 crore loss in the September 2025 quarter. Flexible-packaging assets declined to Rs 100.88 crore from Rs 124.25 crore at June 30, 2026.

Other activities added Rs 34.53 lakh of revenue and Rs 25.89 lakh of segment profit in the September quarter. The segment data show that engineering’s revenue gain and higher segment profit coincided with a larger flexible-packaging loss. Engineering accounted for Rs 2.40 crore of revenue for the half year ended September 30, 2026, double the Rs 1.20 crore reported in the corresponding prior-year period.

What changed in Aeroflex Neu’s half-year results and balance sheet?

Aeroflex Neu recorded a consolidated loss after tax of Rs 3.83 crore for the half year ended September 30, 2026, compared with a profit after tax of Rs 1.88 crore in the corresponding previous-year period. Half-year revenue from operations was Rs 63.98 crore, down Rs 23.74 lakh from Rs 64.22 crore a year earlier. The half-year results included the same Rs 4.46 crore loss on the sale of Fibcorp.

Total consolidated assets were Rs 133.92 crore at September 30, 2026, down from Rs 144.77 crore at March 31, 2026. Total equity decreased to Rs 97.75 crore from Rs 105.19 crore, while total liabilities declined to Rs 36.17 crore from Rs 39.57 crore. Goodwill on consolidation was nil at September 30, compared with Rs 3.08 crore at the March 2026 year-end, and non-controlling interest was nil compared with Rs 3.18 crore.

Within current assets, inventories declined to Rs 18.90 crore from Rs 29.89 crore over the six months. Trade receivables increased to Rs 24.10 crore from Rs 23.10 crore, loans rose to Rs 16.66 crore from Rs 12.34 crore, and bank balances other than cash and cash equivalents increased to Rs 12.19 crore from Rs 80.88 lakh. These movements occurred during the period in which Fibcorp left the consolidated group.

How did Aeroflex Neu’s cash flow change in the half year?

Aeroflex Neu reported net operating cash inflow of Rs 7.48 crore for the half year ended September 30, 2026, compared with an operating cash outflow of Rs 3.37 crore in the corresponding 2025 period. Cash generated from operations was Rs 7.56 crore before tax payments, following a Rs 10.99 crore reduction in inventories. The cash-flow reconciliation included the Rs 4.46 crore loss on sale of subsidiary as an adjustment to profit before tax.

Investing activities used Rs 12.28 crore during the six months, compared with an outflow of Rs 13.97 crore a year earlier. The investing cash flow included Rs 3.01 crore invested in shares, Rs 11.38 crore relating to fixed-deposit maturity or release, and Rs 1.92 crore received from the sale of the subsidiary. Purchases of property, plant and equipment were Rs 21.24 lakh, compared with Rs 91.33 lakh in the prior-year period.

Financing activities used Rs 5.82 crore, after borrowing repayments of Rs 4.65 crore and interest payments of Rs 1.17 crore. Net cash and cash equivalents decreased by Rs 10.61 crore in the half year, compared with a Rs 2.86 crore decrease in the prior-year period. Cash and cash equivalents were Rs 70.54 lakh at September 30, 2026, versus Rs 16.77 crore at the start of the financial year.

Conclusion

Aeroflex Neu’s reported September-quarter loss was principally driven by the Rs 4.46 crore Fibcorp disposal loss, while profit before exceptional items and tax improved sequentially to Rs 51.19 lakh. Revenue increased from the June quarter as engineering revenue rose from Rs 80 lakh to Rs 1.60 crore, but flexible packaging remained loss-making and half-year revenue was marginally below the prior-year level.

The next disclosed event is Aeroflex Neu’s acquisition of 51.01% control in Stilonn Valves and Control Private Limited, effective October 23, 2026, for consideration of Rs 90.33 lakh in tranches. Aeroflex Neu said Stilonn manufactures precision-engineering products with applications in artificial-intelligence infrastructure and data-centre spaces. Future filings will show the post-Fibcorp consolidated base and the contribution of the new subsidiary.